CEC records 3% increase in amounts of power sold in 2022

THE Copperbelt Energy Corporation (CEC) has described its business performance in 2022 as “generally well”. CEC Managing Director Owen Silavwe says the corporation saw a 3 percent increase in the amount of power it sold last year. Addressing the media, Friday, Silavwe said although the 3 percent was a modest growth, it was good for a mature business like CEC. “We believe as a company that we performed generally well in 2022. And when we talk about performance, one of our key priorities, and we would like to start with how we are performing from a safety perspective. And for us, we look at that holistically; so we look at health, safety, environmental and social.  And when you look at……

 

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Source: News Diggers

Job Advertisement: Chief Executive Officer at Kabundi Resources Limited

EMPLOYMENT OPPORTUNITY


 

Kabundi Resources Limited (KRL), is a wholly owned subsidiary of ZCCM Investments Holdings Plc, managing the manganese licence that ZCCM holds in Serenje District, Central Province of Zambia. 

The Company invites applications from suitably qualified and experienced persons who are innovative, energetic and performance driven to fill the position of CHIEF EXECUTIVE OFFICER.

Duty Station: Kabundi Resources Ltd, Serenje, Central Province.


Application clearly marked CHIEF EXECUTIVE OFFICER’ together with copies of certificates and detailed curriculum vitae should reach the undersigned not later than Wednesday 3rd May 2023.

 

Women are strongly encouraged to apply.

Physical

Chief Human Resource & Administration Officer 

ZCCM Investments Holdings Plc

ZCCM IH Office Park, Alick Nkhata Road

P O Box 30040

LUSAKA

Electronic

Visit the ZCCM-IH Career page for this job advertisement at http://www.zccm-ih.com.zm/careers

Alternatively, forward your applications to: jobs@krl.com.zm

ZCCM-IH/HRD/Vacancy Announcements.

Please refer to the Job Description Below for detailed information about the position.

*Only shortlisted candidates will be contacted for interviews.

 

Accelovant Deploys Fiber-Optic Sensors to Improve Efficiencies at Kansanshi Copper Mine

Sensors installed in “smokestack scrubbers” dramatically reduce plant downtime, enabling processing at higher capacities and facilitating automated control.

NORTH VANCOUVER, BC / ACCESSWIRE / April 13, 2023 / Accelovant, an innovative developer of fiber-optic sensing solutions for semiconductor, industrial, IoT, manufacturing, and power distribution markets, announced the deployment of its fiber-optic temperature sensors at Kansanshi Mining PLC, a First Quantum-owned company located in Zambia, and one of the world’s largest and most productive copper mining and smelting sites. The Accelovant sensors replaced older technology devices that were highly prone to failure under the extreme operating conditions within the wet electrostatic precipitators (ESP) utilized to scrub dangerous toxins and pollutants from gas streams generated in the copper smelting process.

“Accelovant specializes in high-temperature fiber-optic sensors which are also immune to electrical noise and interference,” said Michael Goldstein, chief executive officer for Accelovant. “Our patented Kristonium material has created a new class of fiber-optic temperature sensors that offer long service life at temperatures exceeding 450 degrees Celsius. In systems like the ESPs at the Kansanshi mines, the sensors replaced electrical devices that could not survive the harsh high voltage and electrical noise environment.”

To operate at peak efficiency, the plant must maintain precise temperature levels between 325 and 340 degrees Celsius through the use of in-stream sensors. This is a challenge in the harsh operating environment surrounding the wet ESPs (high voltage, electrical noise, and high temperature).

Pieter Oosthuizen, control instrumentation superintendent at the Kansanshi plant, noted that the ESP units operate with a typical 45 kilovolt charge. “In this kind of environment, there is tremendous electromagnetic noise and induced currents in anything that is conductive or that utilizes electronics. We tried many different sensor types, but in all cases the electronics would burn out and fail due to the stray electromagnetic fields – until we installed the Accelovant sensors.”

 

Read more: Bloomberg

NFCA posts increased copper & gold production

The Chinese owned NFC Africa Mine has recorded an annual increase in both its copper and gold production at its Chambishi based mine of kalulushi district on the Copperbelt. At this rate of production, Kalulushi town is expected to get some linkage industry success if local authorities negotiate proper deals.

Copper production at Non-Ferrous China Africa (NFCA), a subsidiary of the state-owned China Nonferrous Metals Corporation (CNMC) increased by over 5,000 tons in 2022 from about 62,300 tons recorded in 2021 to 67,600 tons recorded in 2022. An an average copper price of $9,000 per ton, the mine has produced copper worth $608 million.

The Chinese owned mine has posted two consecutive years of increased production as the report further shows an increase of 18,675 tons when compared to the about 48,900 tons of copper produced in 2020.

According to the consolidated report obtained by the Zambian Business Times – ZBT – compiled by the Ministry of Mines and Minerals Development, Gold production at the chinese mine also increased by about 3kgs from about 51 kgs in 2021 to about 54 kgs in 2022

Non Ferrous Company Africa Mining – NFCA was established in March 1998 as the holding company of Chambishi Copper Mine as part of the privatization of Zambia Consolidated Copper Mines Limited (“ZCCM”). It is majority owned by China Non-ferrous Metals Company Limited (“CNMC”), which holds an 85% shareholding stake, whilst ZCCM – Investments Holdings holds a 15% shareholding stake.

 

Source: Zambian Business Times

ZCCM-IH Shareholders Approve the Kansanshi Royalty Transaction

3rd April 2023, Kitwe, Zambia: ZCCM Investments Holdings Plc (ZCCM-IH) shareholders have approved the Kansanshi royalty conversion where the Company will now receive 3.1% of Kansanshi Mining Plc’s (Kansanshi) total revenue. The royalty revenue will be paid on a quarterly basis over the entire life of the mine of Kansanshi that currently extends to the year 2045.
 
The approval was given at the Shareholder’s Extraordinary General Meeting (EGM) held in Kitwe on 31st March 2023. The royalty income stream replaces the former model of unpredictable and unguaranteed dividend pay-outs. These were made at the discretion of the Board and were dependent on company profitability. Instead, a royalty is predictable and guaranteed as it will be charged at 3.1% of the company’s total revenue (from sales of Copper, Gold, and all other metal products) as per the Royalty Agreement. This therefore guarantees a steady income stream for ZCCM-IH, as long as there is production at Kansanshi.
 

ZCCM-IH Board Chairperson Ms. Dolika Banda says that this will result in a far healthier cash flow for ZCCM-IH which will in turn make it far easier for the Company to raise financing pursue its ambitious investment strategy. 

Ms. Banda further states that “the royalty arrangement will give us consistent and stable income, and fundamentally will change the financial health of ZCCM-IH by so doing. Our ambition is to make investments throughout the mining value chain – from exploration, through to value addition – so that we may help to create national economic success stories for the benefit of all Zambians; and for our shareholders, value creation and a return on their investment.”

A comparison of actual dividends received from Kansanshi since 2009 with estimates for future royalty rates shows that not only will overall revenue be far greater under the royalty model – but the revenue flow is also more predictable and consistent.

In addition, a royalty will see ZCCM-IH benefit from future high copper prices, in the likely event of a price recovery from recent market turmoil. It also affords protection from the worst of any future price slump as it is paid on production, not profitability. If Kansanshi is in production and earning revenues, a royalty will be paid – even if the mine is then producing at a loss.

ZCCM-IH will continue to hold 20% of the shares in Kansanshi Mining Plc, retain 2 out of 10 board seats, and thus continue to participate in the governance of Kansanshi and having full visibility of Kansanshi operations.

The completion of the Royalty Transaction follows extended discussions over the past three (3) years between First Quantum Minerals (FQM) and ZCCM-IH.

 

 

End

 
 
Issued by:
 
ORIGINAL SIGNED
 
Loisa Mbatha
Corporate Affairs Manager
ZCCM Investments Holdings Plc
 
 
NOTE TO THE EDITOR:
 
Summary of Some Key Terms of the Transaction
 
  • Key Terms:
    1. Dividend: Payable depending on satisfactory performance of a company and is at the discretion of the Board of Directors. Relies on company profitability.
    2. Royalty: Charged as a percentage of the amount of minerals produced and sold over a specified period, at the market price. Paid irrespective of profitability.

 

  • Equity Interest:
  • Retention of 20% Class A shares with varied rights.
  • Retain two Board seats on Kansanshi Board to ensure visibility into the operations of the Company. 

 

  • Royalty:
  • The grant of a life of mine royalty to ZCCM-IH in respect of the gross value of all metal products to be extracted from the Kansanshi mine as per the Royalty Agreement to be executed on the Transaction closing date.
  • 3.1% of the Gross Value of all Metal Products extracted from the Royalty Area 
  • Royalty based on the Gross Value of Royalty Products (Copper, Gold, and all other metal products) sold or otherwise extracted at Kansanshi.
  • Royalty will be quarterly payments for the entire Life of Mine of Kansanshi.
  • Replaces dividend payment.

 

  • VAT Refunds:
  • Kansanshi will pay ZCCM-IH 20% of all VAT refunds receivable, on receipt of refunds from ZRA, up to the effective date of the Royalty Agreement.

Job Advertisement: Assistant Accountant, Procurement Officer, Mine Manager, Geologist, Internal Auditor, Commercial Officer

 

EMPLOYMENT OPPORTUNITY: MULTIPLE ROLES


Kabundi Resources Limited (KRL), is a wholly owned subsidiary of ZCCM Investments Holdings Plc, managing the manganese licence that ZCCM holds in Serenje District, Central Province of Zambia. 

The Company invites applications from suitably qualified and experienced persons who are innovative, energetic and performance driven to fill the position listed Below:

  1. Mine Manager X1
  2. Internal Auditor X1
  3. Procurement Officer X1
  4. Geologist X1
  5. Commercial Officer X1
  6. Assistant Accountant X1

*Please Note that the Duty Station is KRL Mine, Serenje


Applications CLEARLY MARKED WITH THE POSITION TITLE, together with copies of certificates and detailed curriculum vitae should be addressed to:

Chief Human Resource & Administration Officer

ZCCM Investments Holdings Plc

and forwarded to jobs@zccm-ih.com.zm

The Application should reach the undersigned not later than 11th April 2023

Please refer to the links below for detailed information about the positions

 

Maamba Collieries has resumed operations and supplying full power to ZESCO – CEO Minwalla

Maamba Collieries Limited (MCL) has completed its scheduled maintenance works on one of its two 150 MW units at the coal-fired thermal power plant three days ahead of schedule and has since resumed operations at full capacity and is supplying full power to ZESCO.

Maamba Collieries Limited has upheld its commitment made to the government and ZESCO, during His Excellency the Republican President of Zambia Mr Hakainde Hichilema’s visit to Maamba on 8th January 2023, to commence operations well before the scheduled date of 20th January 2023. His Excellency inspected the plant to obtain a better understanding of the operations of the thermal power plant and discuss how best such maintenance works should be done going forward without disrupting the energy supply.

“We are happy to inform the nation that the unit was started up and synchronised with the national grid at 09:30 hrs on 17th January, 2023. Both 150 MW power units at Maamba Collieries are now running at full capacity, thanks to sustained efforts by the maintenance teams. The teams worked tirelessly day and night and deployed additional manpower to bring the unit back online three days ahead of the scheduled date for start-up” said MCL CEO Lt Col Cyrus Minwalla (Retd).

“Reducing three days in a 16-day scheduled maintenance shutdown (earlier scheduled up to 19thJanuary) was a herculean task and required our technical teams to work round the clock to bring the unit back online at the earliest, to lessen the impact of the load shedding. This would not have been possible without the support from ZESCO and the government,” Col. Minwalla added

Col. Minwalla explained that the shutdown of the unit, which had earlier been rescheduled on request by the utility, was taken up to allow critical maintenance works, essential for the safety and long-term operational efficiency of the Thermal Power Plant, adding that the modern, eco-friendly coal-fired power plant – the only one of its kind in Zambia – is complex with start-of-the-art systems, and due to the nature of its operations, requires robust periodic maintenance as recommended by the Original Equipment Manufacturer (OEM) to ensure long term sustained availability.

“Maamba Collieries will continue working with ZESCO and Energy Regulation Board to ensure schedules for mandatory maintenance are adjusted as far as possible, to accommodate the national requirement of power and to minimise disruption of the electricity,” he said

He further explained that the present shortage of rainfall in the country has reduced the power generation capacity from hydro plants drastically, and baseload energy producers like Maamba Collieries, which are not dependent on rainfall, play a key role in managing the energy deficit using resources available in Zambia without recourse to imports. The country’s largest independent power producer is presently supplying more than 10 per cent of the nation’s power, due to the reduced hydro-based generation in Zambia.

Col. Minwalla said that as energy is the prime mover of the economy and industry, Maamba Collieries Ltd remains committed to alleviating the energy deficit, including capacity expansion to ensure increased diversity and energy security.

Maamba Collieries Limited (MCL), in Sinazongwe District in Southern Province, is Zambia’s largest coal mine and the nation’s biggest Independent Power Producer (IPP) with Zambia’s only coal-fired Thermal Power Plant (TPP).

The company operates a 300 MW (2 X 150 MW units) modern, eco-friendly coal-fired power plant – the only one of its kind in Zambia – with the capacity to supply 10 percent of the country’s current installed electricity generation capacity.

MCL is owned 65 percent by Nava Bharat Singapore Pte. Ltd and 35 percent by ZCCM-IH, with some US$919 million invested since 2010.

The plant provides diversity in the nation’s energy mix and contributes to the nation’s base load electricity demand with high-availability power that is independent of climate change.

 

Source: Lusaka Times

Kansanshi agreement is a neat solution to a historical problem: All shareholders in Kansanshi are now incentivised towards maximising production – Prof. Oliver Saasa

CCM-IH’s recently announced decision to move from a dividend model to a revenue-sharing model has been both praised and criticised in the media but, concerningly, the rationale and details appear to be widely misunderstood. Mining For Zambia asked renowned economist Professor Oliver Saasa to shine a light on this agreement, which has been three years in the making.

There has been a significant amount of commentary in the media on the Kansanshi agreement since it was announced earlier this month. Has this surprised you?

I personally believe that the interest Zambians have shown in this deal is healthy. Citizens are interested in understanding – and even questioning – the reasoning behind decisions that have consequences for the larger economy. So, it is essential that the public is properly informed about the intricacies and technical details of this agreement, to ensure that people’s opinions are founded on facts – and not on fiction. What the commentators are asking is pertinent: ‘Whose idea was this transaction? How did it come about?’ For those that have followed its genesis, it’s clear that both ZCCM-IH and First Quantum [FQM] have wanted a change, and feel that the dividend model is no longer fit for purpose for either party.

What do you understand to be the rationale behind ZCCM-IHs desire to convert its dividend rights in Kansanshi into royalty rights? Or, put differently, whats in this deal for ZCCM-IH, as you see it?

As ZCCM-IH has explained publicly, a review of its portfolios performance in 2019 revealed that the dividend model had not been maximising shareholder value because it was not delivering predictable revenues. For this reason, pursuing alternative revenue streams became a focus in its subsequent Strategic Plan, for 2020-2026. Securing consistent revenue flows from its investment portfolio (via royalties) is a solution that addresses the unpredictability of dividend payments, which were not serving ZCCM-IH’s interests.

 

Read more: https://miningforzambia.com/saasa-kansanshi-agreement-neat-solution-historical-problem/

KoBold Metals commits $150m investment in Zambia copper mine

US-based artificial intelligence exploration firm KoBold Metals has reportedly pledged a $150m investment to own, explore, and develop the Mingomba copper-cobalt mine in Zambia.

As part of the investment deal, KoBold agreed to pay $115m to the owners of the Lubambe Copper Mine, in which private-equity firm EMR Capital owns an 80% stake, reported The Wall Street Journal (WSJ).

In exchange, KoBold will receive a majority stake in the nearby Mingomba deposit, which is formerly known as the Lubambe Extension Project.

 

Furthermore, KoBold will invest $35m on exploration work at the Mingomba project, which is claimed to be the world’s highest-grade undeveloped large copper deposit.

 

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Source: Mining Technology

3.1% ZCCM-IH Revenue Royalty Model with Kansanshi Copper Mine is a good deal for Zambia – Watson Lumba

A Local Economist has dispelled assertions that the ZCCM-IH sold its 20 percent shareholding in the First Quantum Mine owned Kansanshi Copper mine of Solwezi and advised Zambians to avoid politicizing matters bordering on national wealth creation.

Watson Lumba stated that it is unfortunate that Zambians are finding comfort in politicizing everything and anything, a trait he cites to have potential to plunge the nation into a crisis especially when it borders on the economy and wealth creation.

Mr Lumba who was speaking when he appeared on Tuesday’s edition of Let the People Talk programme on Radio Phoenix said there is no way ZCCM-IH could sell its shares and still remain on the board with voting rights adding that people must stop politicizing good policies.

He noted that the decision by ZCCM-IH to forgo its dividend royalty in preference for the revenue royalty model of 3.1% is a good move that allows the investment holdings which only has 20% share holding in the mine to receive its share regardless of the status of the mining company instead of waiting for profit dividends which are not guaranteed.

“It is not true to say ZCCM-IH has sold its interest in the mine. What is true however is that the investment holdings still have a stake in the mine, and it will receive its money which will be calculated according to sales and not profits as is the case with dividends. Mind you, ZCCM-IH with its 20% shareholding in the mine had very little say despite having voting rights as the other shareholders have more than 50 +1 % giving them the ultimate decision making power. But under the new model, whatever decisions the majority shareholders make will not affect ZCCM-IH and its money as it is guaranteed through sales,” Mr Lumba explained

He further explained that the revenue royalties will ensure the stability of revenue inflow into ZCCM-IH coffers because it is based on the gross value of production as opposed to dividends which are centered on profit and added that the production value is less volatile than the profit value because of the cost element in the latter and the fluidity of the dividend policy that is at play.

Mr Lumba further disputed assertions from especially members of the opposition political parties that the government and the people stand to lose under the revenue royalty despite being the owners of the mine.

“Let us separate the two. The government on behalf of the people of Zambia owns the land and the minerals underneath the land but is not engaged in any form of production and does not incur any costs. Because of that, the government is getting the mineral royalty tax by virtue of it owning the land and minerals underneath. Then we have ZCCM –IH which sits as a shareholder on the board with voting rights but with no or less power to change any decision,” he said

“Under this arrangement, ZCCM –IH was only told what the major shareholders had planned to do with the profits and could do nothing other than take the company to court if not satisfied with the majority decision which was a cost on both entities. But under the revenue royalty model, ZCCM –IH will get its money according to the sales and will not be bothered by any investment decisions by the majority shareholder. The more they invest, the better for ZCCM –IH as it is assured of an increase in returns on its 3.1% royalty. This is a good deal. Let us just not politicize economic policies as that will affect the growth of our economy,” he added

Source: Lusaka Times